The standard of adviser due diligence on platforms varies widely, according to anecdotal evidence from providers.
It comes as the FCA prepares for a review of investment adviser due diligence in the third quarter of this year, which is set to include scrutiny of platform selection.
Speaking at a Tisa conference in London yesterday Axa Wealth Elevate head of strategic partnership Nick Lee says: “We get lots of requests for information which are very detailed down to the other end of the scale where it is more wishy washy. Some advisers have a very clear idea of processes and their requirements but not all. But most of the stuff I see it as the better end.”
Fidelity head of business strategy and development Ed Dymott: “There are some instances where we see the same report coming through asking exactly the same questions and it is not tailored to that firm. In some cases it seems to be a case of running through that process because you have to do it rather than actually thinking about if it is absolutely right for the business.”
Responding to queries about due diligence on platform choice, Transact chief executive Ian Taylor questioned whether the focus on platform due diligence may be misguided: “What does interest me is why advisers are being asked to do due diligence on platforms but not to the same degree on fund managers or other counterparties. It is an interesting focus on platforms rather than other groups.”